Inc.An American company developing a new treatment for prostate cancer, the Swiss drug giant's latest move to duplicate prescription drugs.Endocyte…
Endocyte specializes in so-called radioactive drugs, a new class of drugs that transport radioactive substances directly to cancer cells so that they can kill tumor cells close up.
The deal will add a prostate cancer radioactive drug to Novartis late stage pipeline, boosting its ability in the field, as it expects to be an important growth driver for its business. The company is already selling a radioactive drug targeting a rare form of intestinal tract which it acquired as part of a turnover of $ 3.9 billion last year.
The acquisition is new CEO Vasant Narasimhan’s recent move to focus Novartis on prescription drugs since he took the helm in February.
Over the past year, the company has decided to turn off its Alcon Eye Care Unit ̵
1; which is mainly about lens implant surgery and contact lenses – and sold its share in a consumer healthcare sector – making pharmacy staples like toothpaste and analgesics-to co-owner
PLC for $ 13 billion. Novartis has also sold parts of its Sandoz generic pharmaceutical unit.
At the same time, Narasimhan is launching to offer offers to strengthen the company’s innovative pharmaceutical business. In April, Novartis raised $ 8.7 billion to AveXis Inc., a US drug repurchase company.
Novartis announced the acquisition of Endocyte as reported increases in sales and earnings for the third quarter and increased year-round revenue.
The company said it now expects sales to grow by half a single percentage this year, in fixed currencies. It previously expected that sales grew by low to mid-denominated interest rates. It left its profit expectations unchanged and said it continued to expect core revenues to grow with an intermediate to high one-digit percentage.
For the third quarter, the company reported an increase of 9% of core revenue at constant currencies, driven by strong sales of some of its newer drugs. The Group’s sales amounted to $ 12.78 billion, an increase of 6% compared to a year earlier in fixed currencies, as growth in the company’s innovative pharmaceuticals department offset a weaker performance from its generic pharmaceutical unit.
Write to Denise Roland at [email protected]